860C.51/10–1547: Telegram
The Ambassador in Poland (Griffis) to the Secretary of State
1677. My answer your 8641 delayed on account my absence on trip with Senator Knowland2 to western territories.
It is perfectly obvious that a dollar to Poland is a dollar to Russia and that any protective clauses contemplated loan absolutely unenforceable at any time Russians intervene. The entire decision of Department should be based upon consideration as to whether or not tremendous need of western Europe for Polish coal and probability of its receiving it overwhelm the political dangers. All things considered and in view of international nature of loan as outlined, I would be beckoned to favor the advance solely upon the chances of its aid to western European rehabilitation.
Despite unenforceability of restrictions, believe firmly that covenants and sinking funds should cover not only the increased output but a clearly defined percentage of the entire output in addition.
I assume that on account of international nature of bank no pressure in connection with loan can be brought on Polish Government to at least prevent their responsible officials from issuing slanderous and malicious attacks on us. Nevertheless I hope that Department will canvass any such possibility of pressure. Department can be assured that the very size of this loan will probably be used by Polish Government for further and more violent attacks on the US.
Since McCloy’s recent visit here, believe Poles are convinced that they are going to obtain loan some time if not in the near future.
- Telegram 864, October 8, to Warsaw, not printed, summarized the status of the proposed IBRD loan to Poland as discussed in the Thompson–Garner conversation of September 30 (see p. 452) and requested Ambassador Griffis’ views on the advisability of United States support for the loan (860C.51/10–847).↩
- Senator William F. Knowland of California visited Poland in mid-October.↩